●Tech is the second-strongest S&P 500 sector on the year
●Electronic equipment stocks have led sector
Are the good old days back?
We’re talking about 2017, or at least the latter part of it, when a rip-roaring bull market was seemingly led by tech stocks, week in and week out.
Things could still change tomorrow, but this has the potential to be only the second week of the year that the Nasdaq 100 (NDX) has been the strongest US index and tech has been the strongest S&P 500 (SPX) sector. (The NDX has lagged the field for the past two weeks.)
But with recent hints of rotation away from small-caps this week—the Russell 2000 (RUT) lost ground Monday and Tuesday—some traders may be looking for an uptick in tech momentum, at least temporarily. And over the past five days tech has pushed to the top of the sector heap, and it’s climbed to the number two spot for the year.
In a way, trader and investor appetite for tech is a potential gauge of bullishness, since the willingness to acquire sometimes volatile stocks can be seen as evidence the Street is in “risk-on” mode.
Source: Power E*TRADE
In addition to some big moves in the semiconductor space, electronic equipment and communications equipment stocks have been big gainers (up around 18% year to date), including Keysight Technologies (KEYS), which is shown in the chart above with Salesforce.com (CRM) and Cisco (CSCO).
It may not be 2017 all over again, but if the broad market can sustain a push past resistance levels, tech may be poised to return to its role as a market leader, at least for a while.
Today’s numbers: GDP (8:30 a.m.), EIA Natural Gas Report (10:30 a.m.).
Today’s earnings include: CenterPoint (CNP), Crocs (CROX), Dillard's (DDS), Intercept Pharma (ICPT), JD.com (JD), Keurig Dr Pepper (KDP), LKQ (LKQ), NRG Energy (NRG), Autodesk (ADSK), Dell (DELL), Gap (GPS), Live Nation (LYV), Marriott (MAR), Nektar Therapeutics (NKTR), Nordstrom (JWN), Splunk (SPLK), VMware (VMW), Workday (WDAY).